Lanai Water Company is asking the state Public Utilities Commission to allow a test run of increased rates – some by more than threefold – to help the company recoup growing losses.

In a filing with the PUC late last month, the company said its current rates “do not now and will not in the foreseeable future produce sufficient revenues to allow it to recover” its operating costs. It asked the PUC to allow a test year through Dec. 31.

Lanai Water Co. delivers potable water to about 1,500 residential, commercial and other customers in Lanai City, Koele, Kaumalapau, Manele-Hulopoe and Lanai Airport, as well as to the Miki and Palawai basins, Kaupili Road, Upper Kaumalapau Highway and Upper Manele. The company also provides non-potable (brackish) water to about 50 customers in the Manele-Hulopoe area.

Lanai Water Co. said it has been losing revenue in recent years. For the calendar year 2018, the company had a net loss of $1,322,713 for potable water distribution service and $30,512 for non-potable service. For 2019, the company estimated a net loss of $1,263,865 for potable water service and an estimated $24,346 for non-potable water service.

For the upcoming year, the company is expected to incur a net loss of $1,608,303 for potable water service and a net loss of $193,184 for non-potable water service.

The company said its last general rate increase application for potable water service was in 1994. As for non-potable water service, this would be the first general rate increase since initial rates were approved and established in 2009.

If the commission were to approve Lanai Water Co.’s increased rates, the company estimated it would gain an additional $1,717,970 in overall net revenue for potable water service, a 364 percent increase from the current revenue of $471,460 at present rates. It would also gain an additional $206,372 in net revenue for non-potable water service, a 66 percent increase from the current revenue of $313,207.

Lanai Water Co.’s application asks that the PUC hold a public hearing on Lanai to consider the request. The company also is asking the PUC to issue a decision and order within six months after it’s filed a complete application.

POTABLE WATER

Under the current rates for potable water, the first 25,000 gallons for a user over a two-month billing cycle cost $1.10 per 1,000 gallons. Anything over 25,000 gallons costs $1.62 per 1,000 gallons.

Service charges vary by meter size: $5 for 5/8- and 3/4-inch meters, $10 for 1- and 1 1/2-inch meters, $25 for 2-inch meters, $50 for 3-inch meters, $75 for 4-inch meters, $150 for 6-inch meters, $250 for 8- and 10-inch meters and $80 for hydrants.

The company is proposing a four-step phase-in of increase rates, with each step going into effect six months after the previous step. The monthly charges for each step of usage levels would be as follows:

• Up to 5,000 gallons: $1.22, $1.39, $1.65, $2.02

• 5,001 to 12,500 gallons: $1.41, $1.87, $2.55, $3.51

• 12,501 to 50,000 gallons: $2.32, $3.34, $4.85, $7

• 50,001 to 400,000 gallons: $2.58, $3.98, $6.05, $9

• Over 400,000 gallons: $2.71, $4.30, $6.65, $10

The monthly flat-rate service charges for non-agricultural meters would also go up in steps as follows:

• 5/8-inch: $3.46, $4.85, $6.91, $9.85

• 1-inch: $7.55, $11.28, $16.78, $24.63

• 1 1/2-inch: $10.75, $19.16, $31.55, $49.25

• 2-inch: $21.12, $33.72, $52.28, $78.80

• 3-inch: $40.96, $64.28, $98.65, $147.75

• 4-inch: $64.64, $104.30, $162.76, $246.26

• 6-inch: $129.28, $208.60, $325.51, $492.51

• 8-inch: $211.19, $337.17, $522.81, $788.02

• Hydrants/standpipes: $54.01, $74.48, $104.65, $147.75

Agricultural meters would have different monthly water charges per step:

• Up to 200,000 gallons: $1.10 for all steps

• 200,001 to 400,000 gallons: $2.58, $3.98, $6.05, $9

• Over 400,000 gallons: $2.71, $4.30, $6.65, $10

And, monthly flat rate charges for agricultural meters per step would be as follows:

• 5/8-inch: $3.46, $4.85, $6.91, $9.85

• 1-inch: $7.55, $11.28, $16.78, $24.63

• 1 1/2-inch: $10.75, $19.16, $31.55, $49.25

• 2-inch: $21.12, $33.72, $52.28, $78.80

• 3-inch: $40.96, $64.28, $98.65, $147.75

• 4-inch: $64.64, $104.30, $162.76, $246.26

NON-POTABLE WATER

Current service charges for non-potable water meters are the same as for potable water. However, rates for water usage over a two-month billing cycle differ. For single-family, multi-family, homeowners’ association and other properties, rates range from $3.57 to $5.72 per 1,000 gallons depending on daily usage per lot, unit or acre.

Proposed monthly meter service charges would be as follows, per step:

• Residential 5/8-inch: $6.86, $11.22, $15.58, $19.93

• Multi Group I, 1-inch: $16.21, $27.42, $38.63, $49.83

• Multi Group II, 1 1/2-inch: $28.66, $52.32, $75.98, $99.65

• Multi Group III, 2-inch: $49.24, $85.98, $122.72, $159.44

• Multi Group IV, 3-inch: $93.49, $161.98, $230.47, $298.95

• Multi Group V, 4-inch: $152.69, $267.88, $383.07, $498.25

Meanwhile, the proposed monthly water charges would be as follows, by step:

• Residential up to 50,000: $4.51, $4.34, $4.17, $4

• 50,001 to 100,000: $5.01, $5.34, $5.67, $6

• 100,001 to 300,000: $5.51, $6.34, $7.17, $8

• Over 300,000: $6.01, $7.34, $8.67, $10.01

• Multi Group I up to 50,000: $3.99, $4 for next three steps

• 50,001 to 100,000: $4.49, $5, $5.50, $6

• 100,001 to 300,000: $4.99, $6, $7, $8

• Over 300,000: $5.50, $7, $8.50, $10.01

• Multi Group II up to 50,000: $3.68, $3.78, $3.89, $4

• 50,001 to 100,000: $4.18, $4.78, $5.39, $6

• 100,001 to 300,000: $4.68, $5.78, $6.89, $8

• Over 300,000: $5.18, $6.79, $8.40, $10.01

• Multi Group III up to 50,000: $4.55, $4.36, $4.18, $4

• 50,001 to 100,000: $5.05, $5.36, $5.68, $6

• 100,001 to 300,000: $5.55, $6.36, $7.18, $8

• Over 300,000: $6.05, $7.37, $8.69, $10.01

• Multi Group IV up to 50,000: $4.04, $4.02, $4.01, $4

• 50,001 to 100,000: $4.54, $5.02, $5.51, $6

• 100,001 to 300,000: $5.04, $6.02, $7.01, $8

• Over 300,000: $5.54, $7.03, $8.52, $10.01

• Multi Group V up to 50,000: $3.74, $3.82, $3.91, $4

• 50,001 to 100,000: $4.24, $4.82, $5.41, $6

• 100,001 to 300,000: $4.74, $5.82, $6.91, $8

• Over 300,000: $5.24, $6.83, $8.42, $10.01

* Colleen Uechi can be reached at cuechi@mauinews.com.